§ 5. Mr. Barry Jonesasked the Secretary of State for Industry if he will regard high levels of unemployment as evidence of long-term structural decline in making decisions on assisted area designation; and if he will make a statement.
§ The Minister of State, Department of Industry (Mr. Norman Lamont)The state of unemployment is certainly one of the statutory criteria which my right hon. Friend is required to take into account in designating assisted areas.
§ Mr. JonesGiven that there is a desperate need for new jobs, what study has the Minister made of the Euroroute? It is claimed that a road and rail bridge across the Channel would create 100,000 jobs annually and that it would provide a stimulus to quarrying, steel, engineering and other industries. What news does the Minister have for the hard-pressed regions about the Nissan car factory project?
§ Mr. LamontThe Euroroute is primarily a matter for my right hon. Friend the Secretary of State for Transport. Discussions are continuing on that matter. I note what the hon. Gentleman said about the difficulties facing his area which has been extremely hard hit by closures. However, more that £35 million in Government assistance has been 567 given to the two travel-to-work areas in the hon. Gentleman's constituency—£14 million to Shotton and £21 million to Wrexham. Therefore, the Government cannot be said to have been ungenerous in their assistance to those areas.
§ Sir Anthony MeyerIs my hon. Friend aware that there is support on both sides of the House for the concept of the Euroroute? Is he further aware that a great stimulus has been given to jobs in Wales by the very large, low-interest loans from the EEC, which have been announced today? About £30 million of low-interest loans will he made to North and South Wales.
§ Mr. LamontI am aware of those loans, which all receive cover from the exchange risk guarantee scheme, operated by the Department. I annouced the extension of that scheme last week. I am sure that my hon. Friend will be pleased that the United Kingdom is taking up well over 50 per cent. of the ECSC loans provided under article 56.
§ 6. Mr. Marksasked the Secretary of State for Industry when he will announce the results of his review of the July 1979 decision to make certain intermediate assisted areas non-assisted.
§ 17. Mr. Charles R. Morrisasked the Secretary of State for Industry if he has any plans to review his assisted area policy.
§ Mr. Norman LamontThe Government stand by the commitment to review those assisted areas due to become non-assisted from 1 August 1982 having been downgraded by more than one step. As regards the timing of the review, as my hon. Friend the Under-Secretary of State said on 26 November in answer to the hon. Member for Edinburgh, East (Mr. Strang) my right hon. Friend hopes to announce the results of the review in the spring.
§ Mr. MarksHas the Secretary of State studied the detailed submission made to him and the Prime Minister by the Greater Manchester council and by all 10 metropolitan districts? Will he receive a delegation from the area as soon as possible? Is he aware that several of the areas that will retain assisted area status have lower figures for unemployment than Greater Manchester?
§ Mr. LamontI am aware of the hon. Gentleman's last point. It is true of some areas, but not of others. I have received the submission from the metropolitan authorities. Of course, we shall be prepared to see them.
§ Mr. Charles R. MorrisDoes the Minister recall that the Secretary of State said that he is prepared to review assisted area status if there is evidence of long term structural decline? Is the hon. Gentleman aware that since assisted area status was withdrawn from Greater Manchester, unemployment there has risen by 133 per cent.—from 98,000 to 171,000 with 68,000 under the age of 25? Is not that evidence of long term structural decline?
§ Mr. LamontI am aware of what the right hon. Gentleman said. Unemployment has risen nationally as well. On the post 1982 basis, unemployment in the Manchester travel-to-work area will remain below the average of all intermediate areas. The right hon. Gentleman has a case, but it is not quite as strong as he said. In the last three years £11 million in selective financial assistance has been given to the Greater Manchester area. That has created more than 4,000 new jobs and safeguarded 5,000 jobs. That is before 568 considering regional development grants and section 8 assistance which amount to £15 million, which must have had a similar affect on jobs.
§ Mr. Anthony GrantIs my hon. Friend aware that almost any area can make a strong plea to be included for assistance of one sort or another under regional policy? In the review, will the Minister bear in mind that it does no service to the nation or to the economy to spread the largesse too widely and too thinly?
§ Mr. LamontOne of the aims of regional policy is to cncentrate on certain areas. That makes the policy more effective. My hon. Friend is absolutely right. At any time when unemployment rises, some areas will experience an above average rise. We cannot give aid to every area with above average rates of unemployment, because there are bound to be variations.
§ Mr. Arthur DavidsonThat is all very well, but is the Minister aware that he phased out assisted area status from north-east Lancashire on the basis that unemployment there was low at about 4 per cent.? The rate has now soared to 12 per cent. Is he now trying to fob me off by saying that there are worse regions than that? I know that there probably are worse regions, but the figures are deplorable. North-east Lancashire's case is overwhelming. Will he do something about restoring assisted area status to that region before the situation becomes catastrophic and it is too late to do anything about it?
§ Mr. LamontWe are determined to stick to our policy of concentrating aid on certain areas and of reducing the total area of the country that is covered by regional aid. Within that policy we are prepared to examine the long term implications of any individual area.